Introduction by Author
What is Meant By Financial Freedom?
Dear Friend,
In the 21st century the concepts of time and money are being redefined.
â€Financial Freedomâ€, is one such term that has gained much importance
in the changing financial scenario.
â€Financial Freedom†means the freedom from continuous financial responsibilities
through a planned management and allocation of assets. It frees a person from
back-breaking work by giving him a steady source of income for life.
One must not think that a financially free person is also debt free. However,
his prudent asset management ensures that his debts do not become a burden but
only a part of his over-all expenses. In this way, his debts do not hinder
his long term financial goals.
Financial freedom cannot be equated with being rich. One must not forget that
surplus wealth requires constant supervision. In the long run, a rich man’s
obligations do not make him â€financially free†in the true sense.
Thus, financial freedom maybe defined as a lifestyle that blends expenses and
income according to the individual preference. This makes â€financial freedomâ€
a more possible and convenient state of being.
Financial Freedom is Time Freedom
â€Time is moneyâ€, is the general belief in the professional world. This attitude
does not allow space for leisure time. However, financial freedom has changed
this concept of work by enabling a person to enjoy leisure without hampering
his steady income in any manner. The entire concept of “financial freedom†is
based on assets and investments that are compounded over time to generate money.
It takes care of the regular expenses and leaves a person with both time and
money in his hands. A financially independent person is free from the clutches
of time-for-money routine.
Achieving Financial Freedom
To understand â€financial freedom†one must come out of the traditional concepts
regarding income and expenses.
We have been taught that timely work generates money. â€Financial freedom†opposes
this concept of time-for-money swap and lets the money work for the individual
instead. However, in spite of this advantage many professionals find it difficult
to work without a fixed routine.
Thus, to achieve financial freedom one needs to change their old mindsets and
develop a new attitude towards earning money. One must realize that money is
simply the means to achieve ends.
One must also remember that a person cannot be judged by the money he possesses.
Unless these misconceptions are cleared the entire purpose of financial freedom
is defeated since satisfaction is the keyword to financial freedom.
Similarly, one must also get rid of the negative attitude towards earning money.
While excess demand for wealth hampers one’s healthy relationship with finances,
a healthy perception of money is necessary to maintain an over-all balance.
Remember that one earns money to achieve ends and therefore, it is healthy and
normal to earn money as long as one feels the ethical need to do so.
In the end, one may say that financial freedom is the state of mind which works
towards development through a process of self liberation.
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